Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
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| Statement |
|---|
| On a year-on-year basis, we expect double-digit organic growth in this segment, mostly due to improved market conditions in China and Europe versus a year ago |
| And we are proud of our achievement of 8 consecutive quarters and we'll see how it plays in the future |
| We are very pleased with the results |
| We continued our trend of record operating margin |
| Sales into fast-growth markets continue to accelerate |
| And we are fortunate to have people in our businesses who are very accountable and know the customers, know the markets, and run those business units very well |
| And the new products in the fast-growth markets are at higher margins than the corporate average |
| All the businesses are performing well |
| Our long-term growth profile continues to improve as sales into fast growth end markets grew 40% from prior year to $23 million in the quarter |
| In terms of 8 consecutive quarterly records of adjusted operating margin, I think it was 140 basis point lift year-over-year |
| We have in the last 6 months of the year proven that the technologies we've developed together do deliver performance improvements for the solar panels |
| We feel very, very good about our team's abilities to manage their price to cover the cost of material, inflation and inputs, both supply chain and materials, they proved it in spades throughout the last 3 years of the pandemic |
| The continued effectiveness of our price and productivity actions maintained our record margin set last quarter, representing our eighth consecutive quarter of record level adjusted operating margin |
| We feel that we are well positioned as a preferred owner for some attractive companies |
| 3 of Standex's 5 business segments expanded margin year-on-year |
| We are pleased to see continued improvement in our ROIC, which is now at 12% on an annualized basis through Q3 FY '23 |
| So SST clearly is in a good position to capitalize on these market trends |
| And if I can just add, Chris, and if you take a look at electric vehicles, for example, that's where our SST business has a very good position |
| On a year-on-year basis, we expect mid- to high single-digit organic growth, offset by the Procon divestiture and significant adjusted operating margin improvement, driven by continued realization of pricing and productivity initiatives |
| The white goods or the appliance end market is still a bit soft, but we feel -- as David said, we feel very strongly and very, very good about our fast-growth end markets exposure, and we feel that can more than offset the softness we are seeing in our plans |
| We have a strong competitive position in good end markets and good growth prospects |
| But we tend to look at this through the cycle, feel very strongly about this business |
| In soft trim, our highly efficient soft trim tool improves manufacturing productivity and reduces maintenance costs |
| We feel very good about the continued growth in fast-growth markets |
| Our differentiated spin forming capability has allowed us to enter new and exciting development projects like the next-generation prototype zero-emission aircraft |
| Our strong balance sheet positions us well to be opportunistic on an active pipeline of internal investments and an active funnel of inorganic candidates |
| As a result, we have continued to deliver sustainable, profitable growth through this environment |
| Third quarter 2023 adjusted operating margin increased 140 basis points year-on-year to 15.2%, matching our highest adjusted operating margin in company history from the prior quarter |
| Our regional presence, strong customer relationships and disciplined approach to pricing and productivity, provide protection from supply chain challenges and inflation |
| We are excited about seeing these opportunities materialize and expand |
| Statement |
|---|
| Operating margin of 14.5% in fiscal third quarter 2023 decreased 90 basis points year-on-year due to unfavorable regional mix |
| Adjusted operating margin of 21.8% in fiscal third quarter 2023 decreased 230 basis points versus the year ago period primarily due to lower sales and unfavorable product mix, offsetting price and productivity initiatives |
| In the fiscal fourth quarter of 2023, on a sequential basis, we expect revenue to decrease moderately to significantly primarily due to the Procon divestiture and lower sales in the Display Merchandising business |
| Engineering Technologies revenue of $18.1 million decreased 13.6% year-on-year, reflecting lower volume due to project timing, partially offset by higher revenue from new product development |
| Segment revenue of $78.2 million decreased 2.1% year-on-year as an organic increase of 1.3% was more than offset by a 3.4% negative impact from foreign exchange |
| On a consolidated basis, total revenue decreased 2.6% year-on-year to $184.3 million |
| Engraving revenue decreased 0.8% to $36.9 million as organic growth of 3.9% was more than offset by a 4.7% headwind from foreign exchange |
| But we are seeing some wage inflation and delays in hiring |
| Operating margin is expected to be slightly lower |
| And I think it's like distribution channels, we have a little less visibility to, those are going to be a function more of the general economy |
| And although there's activity there in building our funnel, there's less actionable -- fewer actionable opportunities in the near term just because the broader M&A market has taken a bit of a pause |
| Backlog is down slightly |
| So it's a little harder to predict the time line |
| In terms of current conditions, supply chain issues have eased for our businesses in the last few years |
| Michael Legg And on hiring and wages? David Dunbar No, we are seeing more pressure on wages |
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